Tax reliefs for families in Germany
(Steuerliche Entlastungen für Familien)

Families in Germany benefit from a range of tax reliefs and financial support instruments designed to ease the financial burden on parents and to acknowledge the costs of raising, educating and caring for children.

1. Kinderfreibetrag – child tax allowance

• Tax-free amount: €9,312 per child (from 2025)
  This consists of:

  • €6,384 for the child’s basic living needs

  • €2,928 for care, education and training

The tax office (Finanzamt) automatically checks which is more beneficial for the parents:

• the Kinderfreibetrag (child tax allowance), or

• the Kindergeld (monthly child benefit).

If the tax saving from the Kinderfreibetrag is higher than the total Kindergeld received, the Kinderfreibetrag is applied automatically.

2. Kindergeld – monthly child benefit

• Paid monthly for each child, regardless of the parents’ income.

• Amount in 2025:

  • €250 per child

It is usually paid until:

• the child’s 18th birthday, or

• up to age 25, if the child is still in education or vocational training.

3. Elterngeld – parental allowance after birth

Elterngeld is aimed at parents who reduce or suspend their work after the birth of a child in order to care for the newborn.

• Amount: up to €1,800 per month (depending on previous net income)

• Duration:

  • 12 months for one parent

  • + 2 additional “partnership months”, if both parents share childcare and each takes a certain minimum of Elterngeld months.

4. Unterhaltsfreibetrag – allowance for supporting another person

If you financially support another person (e.g. one of your parents, or a child who does not live in your household), you may claim the Unterhaltsfreibetrag.

• Up to €10,908 per year (2025)

• This amount can be deducted from your taxable income, provided certain legal conditions are met.

5. Entlastungsbetrag für Alleinerziehende – relief for single parents

This tax relief is for single parents (mother or father) who live with at least one child in their household and raise the child without a partner.

• Fixed relief amount:

  • €4,260 per year for the first child

  • plus €240 for each additional child

• The amount is deducted from the income before calculating the income tax, thereby reducing the total tax burden.

6. Ausbildungskosten – children’s education costs

Certain education-related expenses for children can be taken into account for tax purposes, such as:

• Tuition fees at recognised private schools:

  • Up to 30% of the fees, capped at €5,000 per year

• Other education expenses, if they are clearly related to a future profession or recognised training path.

7. Betreuungskosten – childcare costs

Part of the childcare costs can be deducted, for example for:

• day nursery / kindergarten (Kita)

• after-school care (Hort)

• childminder (Tagesmutter / day-care provider)

Limits:

• Up to €4,000 per year and per child

• For children up to the age of 14

8. Splittingtarif – income splitting for married couples

Married couples can file a joint tax return.

• In this case, the Ehegattensplitting (income splitting for spouses) applies.

• This often leads to a significantly lower overall tax burden, especially when one partner earns considerably more than the other.

9. Schulgeld – tuition fees for recognised private schools

For recognised private schools, part of the tuition fees can be claimed:

• 30% of the eligible school fees, up to €5,000 per year

• Costs for accommodation, meals or leisure activities are not included.

Key terms

Summary

The editorial team has prepared this overview with great care and on the basis of several sources. Nevertheless, errors or incomplete information cannot be fully excluded. The content is therefore intended only as a first, non-binding orientation. For binding and personalised advice, please contact the competent tax office or a qualified tax adviser in Germany.